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\"As a technology company and a system integrator (SI), we will work with our clients across the verticals and help them in adopting 5G led growth and transformation of their business including help setting up of their private 5G networks<\/a> in their campuses or factories,\" N Ganapathy Subramaniam, chief operating officer, TCS told ETTelecom.
Mumbai-based TCS is a system integrator, and as per current framework, it can set up captive 5G network<\/a> for enterprises but can not become a licensee or own spectrum.
A private or captive network is an extension to a wireless technology for the creation of a dedicated local area network<\/a> (LAN) within a specific premise or business facility for seamless connectivity needs and is restricted to offer services outside.
In a recent move by the Department of Telecommunications (DoT), following the Telecom Regulatory Authority of India (Trai<\/a>) recommendations, a company that wants to set up a non-public network for its captive or limited use can lease out airwaves from a telecom service provider or directly purchase from the government.
In a recent spectrum sale, Adani Data Networks, owned by Asia's richest industrialist Gautam Adani, acquired 400 MHz in the millimeter wave (26 GHz) spectrum band at Rs 212 crore, becoming the first entity to purchase spectrum to put up exclusive captive 5G network across multiple business locations.
However, the diversified conglomerate is expected to partner with a technology or gear vendor to deploy its enterprise-wide network.
\"The move by the government on private networks is a step in the right direction. This will certainly accelerate the digital adoption across enterprises,\" Subramaniam said, adding that companies could truly adopt next practices in making their manufacturing, logistics, anchoring or participating ecosystems to be truly digital which in turn would make them competitive.
Currently, the TCS-backed consortium is also deploying a 4G network for state-run Bharat Sanchar Nigam Limited (BSNL<\/a>) that can be upgraded to 5G next year.
On the back of the sector regulator's suggestion on demand studies for the direct spectrum assignment, the telecom department (DoT) has also recently invited applications from enterprises that have a net worth of more than Rs 100 crore, and are willing to set up captive networks. The department has opened up an application window between August 10 and September 9.
The new norms allow the department to only put a processing fee of Rs 50,000 for the allotment of spectrum to enterprises willing to connect their facilities.
Meanwhile, the move has pitted the telecom carriers against technology players and system integrators with the former arguing against offering flexibility to enterprises to set up their non-public 5G networks citing a loss to their potential business and frequency interference.
Recently, the Delhi-based Cellular Operators Association of India (COAI) said that in the wake of low average revenue per user (ARPU), service providers could not merely rely on consumer business for next generation services.